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Conoil has posted its weakest profit in years, and the numbers show just how tight things have become for fuel marketers.
The company’s profit after tax fell 77 percent to N2.01 billion in 2025, down from N8.77 billion a year earlier, according to its unaudited results. Earnings per share dropped sharply to 290 kobo from 1,264 kobo. The board proposed no dividend this time, compared with a 350 kobo payout the previous year.
Revenue fell 6.6 percent to N301.7 billion as fuel sales lost momentum. Frequent price swings at the pump and softer consumer spending meant fewer litres moving through its stations, capping growth
Costs offered little comfort. Although cost of sales declined, gross profit still fell to N22.9 billion from N26.4 billion. That left less breathing room to absorb rising operating and financing pressures.
The real pressure showed up in its interest bill. Finance costs more than doubled to N10.4 billion as the company leaned harder on bank loans to keep operations running.
Short term borrowings surged 89 percent to N54.2 billion, swelling current liabilities to nearly N99 billion and tightening the squeeze on the balance sheet. Profit before tax fell 77 percent to N2.53 billion, even as distribution expenses eased and administrative costs rose only modestly.
Cash flow paints a similar picture. Operating activities generated just N167 million, compared with N8.8 billion a year earlier. Receivables tied to credit sales and inventory build up soaked up much of the cash.
After capital spending and interest payments, the company ended the year with a net negative cash position of about N41.2 billion, wider than the N21.4 billion recorded in 2024.
Conoil did increase investment in property, plant and equipment to N7.2 billion, nearly double the previous year. Non current assets rose to N12.4 billion as a result.
Management attributed the squeeze to the need to hold more inventory and extend credit to sustain sales, a familiar challenge in Nigeria’s downstream sector where marketers often plug supply gaps with expensive short term financing.
The balance sheet offers limited cushion. Shareholders’ funds edged down 1.1 percent to N39.1 billion, while retained earnings declined after another year of dividend payments that outpaced net profit. Net asset value per share dipped slightly to N56.30.
Conoil’s numbers mirror what is happening across Nigeria’s fuel retail space. Deregulation has changed pricing dynamics, exchange rate swings have made costs unpredictable, and access to affordable credit has tightened. Margins are thinner, and there is less room for mistakes.
With interest payments taking a bigger bite out of earnings, the focus now shifts to whether the company can stabilise cash flow and ease its dependence on short term borrowing. The next few quarters will make it clear whether this was just a difficult year or a sign of deeper pressure ahead.
